Bitcoin (BTC) Faces Resistance at 200-Week Moving Average, Further Downside Possible?

    After a brutal crash final weekend, the Bitcoin (BTC) value bounced again surging previous $20,000. On Tuesday, as BTC tried to march ahead above $21,500, it confronted resistance and has retraced since.

    As of press time, Bitcoin is buying and selling at $20,474 with a market cap of $390 billion. For Bitcoin to maintain the upward momentum, it has to reclaim its 200-week shifting common of $22,500 and switch it into help.

    Crypto market analyst Rekt Capital additional explains: “If BTC can’t reclaim the 200-week MA as support… Then one of the scenarios of what could happen would involve downside to new lows before the formation of an Accumulation Range for the first time below the 200-week MA”. 

    Bitcoin miner capitulation at its peak. Last week, Bitcoin miners sold nearly 9000 BTC to cowl their operational prices. there was an enormous spike within the miner to trade movement. Popular Twitter deal with @OnChainCollege notes: “Miners capitulating is a sign that you want to see in bear markets. It could still take months, and more decline, to find that bottom”.

    Bitcoin Supply at Exchanges

    Looking at the constructive facet of issues, Bitcoin provide at the exchanges is at a 3.5-year low as per on-chain information supplier Santiment. The information supplier provides:

    “The ratio of #Bitcoin‘s supply continues to stay low at levels last seen in November, 2018. This is a good signal of limited future selloff risk. In the meantime, supply continues skyrocketing on to exchanges, indicating greater buying power”.

    Courtesy: Santiment

    The proven fact that Bitcoin (BTC) is already buying and selling at a 70% low cost from its all-time excessive is an effective sign for long-term gamers to build up. Instead of recognizing the precise backside, long-term traders can begin Dollar Cost Averaging at this level to reap wholesome earnings 4 years from now. It shall be attention-grabbing to observe how lengthy Bitcoin continues to carry its $20,000 help ranges.

    Bhushan is a FinTech fanatic and holds a superb aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary expertise.

    The offered content material could embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability to your private monetary loss.

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